PR with Payload
Summary:
Balancer has been actively seeking yield-bearing liquidity for some time. The emergence of new DeFi primitives, like svUSD, svETH, and svBTC, are helping bridge more liquidity to Arbitrum than ever.
As Arbitrum liquidity continues to rise, a compelling opportunity arises for Savvy to replicate the achievements of Balancer’s Mainnet pools on Arbitrum. This TriCrypto pool benefits Balancer by bringing a new yield-bearing DeFi primitive that benefits Savvy by opening an additional market for svTokns, and helps the ecosystem by providing a new way to earn yield.
References/Useful links:
Balancer Gauges
root: ArbitrumRootGauge | Address 0xa1dDe34d48868F9E0901592f2A97e20F76004059 | Etherscan
child: ChildChainGaugeFactory | Address 0x6817149cb753BF529565B4D023d7507eD2ff4Bc0 | Arbiscan
Link to:
• Website https://savvydefi.io/
• Documentation https://docs.savvydefi.io/savvy-defi-faq/introduction-to-savvy-defi
• Github Page https://github.com/savvy-finance
• Communities https://discord.gg/savvydefi
• Other useful links? https://twitter.com/SavvyDefi
Protocol Description:
Savvy is a novel platform offering non-liquidating, self-repaying, and interest-free borrowing solutions. With Savvy’s cutting-edge synthetics, you can access up to 50% of your collateral’s value. Whether you prefer stablecoins, Ethereum, or Bitcoin derivatives, our platform caters to your borrowing needs, allowing you to repay in a manner that eliminates the risk of liquidation. Our loans are uniquely secured against the future yield of your collateral, ensuring a secure and flexible borrowing experience—proposal to add vote gauges for our svUSD-svETH-svBTC pool.
Motivation:
Savvy Protocol realigns the distribution of earnings derived from the yield earned when collateral is deposited, and synthetic DeFi Primitives like svUSD, svETH, and svBTC are minted. We plan to incentivize the Balancer DEX pool with SVY emissions. To enhance efficiency and streamline the emissions process, the Balancer team recommends the implementation of a gauge. This gauge would enable the direct allocation of these incentives. As the Total Value Locked (TVL) in the pool grows, the pool becomes entitled to a larger share of incentives from Savvy Protocol. This dynamic incentivizes the pool to evolve into the primary liquidity source for the omnichain CDP suite, including svUSD, svETH, svBTC, and the various future synthetic DeFi Primitives we plan to release.
Specifications:
1. Governance:
Savvy Protocol’s governance is steered by SVY, which empowers holders to participate in voting on protocol adjustments. SVY holders can propose and cast votes on changes, ensuring a democratic decision-making process. Changes ratified by the voting community do not trigger immediate implementation, safeguarding the system against potentially detrimental proposals. The Savvy DAO Council (not yet implemented) comprises co-founders, top users, and advisors. This council acts as a governing body, offering invaluable guidance and expertise.
Oracles:
No, the Savvy protocol and its svTokens do not require oracles.
Audits: This is our Halborn Audit:
Centralization vectors:
Currently, svUSD, svBTC, svETH operate permissionlessly. Anyone can deposit funds and mint Savvy’s svTokens up to 50% max loan to value, taking out an interest-free, non-liquidating, and auto-repaying loan. Centralization factors are very shallow, meanwhile. The most significant factor is that smart contracts are proxy upgradeable. However, our deployer is a multisig 3/7 and our treasury is also multisig to do anything meaningful, like upgrades to contracts. We require and additional 3/7 Multisig to make any changes.
Market History:
It’s important to note that the token history for assets like svUSD, svBTC, and svETH is relatively recent, with their introduction occurring in June of this year. These tokens represent synthetic derivatives, and while they are over-collateralized, they should not be mistaken for stablecoins. Unlike traditional stablecoins, svTokens can fluctuate in price and may exhibit slight variations compared to the underlying tokens used for their minting. Savvy always honors the redemption of svTokens for the underlying collateral at 1:1, regardless of market conditions. This distinction is crucial to understand, as it underscores the unique characteristics of these synthetic assets within the ecosystem.
Value:
The overwhelming demand for leverage has been a driving force behind Savvy swap pools on the secondary market, frequently encountering liquidity shortages. This high demand can make it challenging for users to access the assets they need when trading svTokens. However, introducing the tricrypto pool is a game-changer. It enables users to seamlessly exchange one svToken for another, addressing a significant limitation that users previously faced. This innovation allows for more flexibility, arbitrage, and convenience in trading these synthetic assets, ultimately improving the user experience within the Savvy ecosystem.
Specification:
The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address):0xa1dDe34d48868F9E0901592f2A97e20F76004059
gaugeType(string): Arbitrum